Transforming Tomorrow Sustainable Development Review 2013

1 2012 Awards for Sustainable Development

What House Awards Sustain Magazine RICS Wales Awards Silver: Best Partnership Scheme Awards Winner: Gwent Records ofﬁ ce in Building at Dee Park Conservation category Winner: Best Construction Project – Peartree Way and Cotney Croft Code Winner: Royal Welsh College of Music & for Sustainable Homes Levels 5 & 6 Drama in Design and Innovation category Housing Design Awards LABC Building Energy Saving Winner: Bridport House in Mayor’s Housing Design award Excellence Awards Trust Fleet Hero for Community Consultation North Awards Winner: Houghton Primary Care Winner: Fleet Hero of the Year for Centre for Best Sustainability Design Best Private Sector Fleet Building Better Commended: NET Park for Large Commercial Development and Healthcare Awards Best Partnership with Gateshead Winner: Houghton–le–Spring Council Environment Primary Care Centre for Best South and Energy Innovation in Sustainability Winner: Orchard Village for Best Social Housing Development in Awards London Highly commended: Sustainable Constructing Business of the Year category Excellence Awards Business in the Winner: Houghton-le-Spring Housing Primary Care Centre for the Community Corporate Legacy award in Sustainability Responsibility Excellence Awards Index 2012 Winner: Contractor of the Year Aff ordable Home Gold Standard Ownership Awards Considerate Winner: The Spectrum Development, BREEAM Awards Constructors Rayners Lane for Best Regeneration Project Winner: 1st BREEAM Outstanding Scheme Health Facility – Houghton Gold Awards for: Primary Care Centre Backwell School 6th Form and Winner: 1st Zero Carbon ‘In Use’ Lecture Hall. Retroexpo Awards School (Design Stage) – Ashmount Middlesbrough BSF – Acklam Grange Winner: North Somerset Council Primary School School Town Hall in category of Public Building Retroﬁ t of the Year Stockwell Park High School CIOB Committed to Mardyke Estate Renewal North East Construction in the Constructing East Midlands Awards Winner: Willmott Dixon in Health Excellence Awards and Safety category Winner: Sustainable Project of the Winner: Willmott Dixon and Scape in Year - Houghton Primary Care Centre Innovation category for Sunesis

2 TRANSFORMING TOMORROW What we do

Willmott Dixon is a privately owned business Founded in 1852, Willmott Dixon has grown to become one of the country’s most recognisable brands in the construction and support services sectors. Group Chief Executive Rick Willmott is the ﬁ fth generation of the Willmott family to lead the business, aided by some of the sector’s most astute business people and supported by a complementary team of specialists across all Group companies.

RESIDENTIAL ENERGY SERVICES

Major contracting, house Specialising in assembling, Repair and maintenance An internal sustainability building, interior fi t-out funding and developing services to social housing and innovation and refurbishment through long-term mixed-use and corporate clients. consultancy, developing the following brands: housing regeneration Partnerships the Group’s sustainable Construction projects, often through Providing facilities maintenance development strategy Non-residential projects joint ventures with public services to over 500,000 and supporting its over £1m across 15 sectors. and private sector partners. residents in 165,000 homes. implementation. Interiors Residential Energy Services Design and fi t-out of non- New homes to buy. A specialist division focussing residential accommodation. on low carbon retrofi t for commercial, public and Housing domestic buildings. Building all types of residential Bespoke city centre apartments accommodation. designed for the private rental market.

3 Our vision

We will build on our history and reputation to add value to clients and shareholders by maintaining a leadership role in the built environment, undertaking our activities in a sustainable and responsible manner and contributing to society as a whole.

Our values

Relationship focussed • Like-minded customers are critical assets • Align behaviour with business goals • Build long-term loyalty • Make the supply chain a refl ection of the company Human touch • Health and safety always comes fi rst • Recognise ‘it’s all about people’ • Complementary teams are the most effi cient Preserve our environment • Promote from within where we can • Committed to ongoing waste reduction • No better place to develop a career • Determined to reduce our carbon footprint • Challenged but contented • Procuring resources on a sustainable basis • Support diversity • Awareness and adoption of best practice

Intrapreneurial and direct • Investors in great ideas Visible • Promote change for the better • Value and promote our brand and • Ask “is this in the company’s best interest?” heritage • Stretching performance, robust measurement • Community engagement matters • Incentives for all, success shared • Be recognised as industry leaders and market inﬂ uencers • Encouraging ‘localism’ • Clear vision effectively communicated • Demonstrable professional and ethical integrity

4 TRANSFORMING TOMORROW Welcome to our annual review of Willmott Dixon’s performance in relation to sustainability.

I hope this report will demonstrate the progress we continue to make in managing a substantial organisation in a challenging market, whilst retaining the cultural, sustainable and ethical attributes upon which we pride ourselves. 2012 saw us offi cially become a carbon neutral business and we have made good progress in becoming more energy effi cient across the company, which we anticipate will reduce our projected energy costs by around £3 million a year by 2014. We have also invested the equivalent of £1.1 million in local communities Rick Willmott under the auspices of the newly established Willmott Dixon Foundation. Group Chief Executive Willmott Dixon Another highlight has been the founding of our 4Life Academy in Birmingham. The Academy will provide specialist training for over 2,000 people a year to equip them with lifelong skills in a whole range of construction and low carbon related areas. I’ve really enjoyed working with colleagues on projects in this review, and I am “I’ve really enjoyed working very proud of our achievements to date. We recognise, however, that there remain with colleagues on projects signifi cant challenges ahead and, to ensure that we stand the best chance of in this review, and I am very succeeding in our sustainable development endeavours, we have set even more proud of our achievements stretching targets for the Group in 2013. to date.”

5 If there were ever any doubts about the urgent need for more sustainable development, events over the past couple of years should be enough to ﬁ nally lay them to rest.

At the end of 2011, the world population reached 7bn. In early 2013, levels of carbon dioxide in the atmosphere reached a record 400 parts per million – the highest for millions of years. In the UK, diffi cult economic conditions have been felt by people up and down the country, exacerbating the impact of rising energy bills, and bringing more and more Jonathon Porritt households into fuel poverty. Non-Executive Director Willmott Dixon Challenging times for the construction industry, however, have seen budgets contract, increasing the temptation to reduce investment in sustainable development, especially when saving money is clients’ top priority. But companies, faced with these pressures, need to think carefully. The banking crisis and heated exchanges over corporate tax arrangements have fuelled a growing public “2012 has seen mistrust of large corporations, and sparked debate about whether businesses should Willmott Dixon continue play a more active role in the social, economic and environmental development of the to make a real difference communities they serve. The 2012 Public Services (Social Value) Act articulated some in a variety of ways – of this thinking. from reducing the carbon Our Transforming Communities paper (p28) responded by outlining some practical ways emissions of the buildings in which service providers can leave positive legacies in the communities in which they we construct, maintain serve. The paper refl ects the many years of experience Willmott Dixon has of investing and refurbish, to fi nding in communities. In 2012 our social investment was captured for the fi rst time through innovative solutions to the company’s new Foundation, a vehicle which is already providing strategic direction sustainability conundrums; to our community activities, and sharpening the focus on the linked areas of social from helping to provide local exclusion and anti-social behaviour. employment to developing 2012 has seen Willmott Dixon continue to make a real difference in a variety of ways ground-breaking partnering – from reducing the carbon emissions of the buildings we construct, maintain and and funding arrangements. refurbish, to fi nding innovative solutions to sustainability conundrums; from helping ” to provide local employment to developing ground-breaking partnering and funding arrangements. It’s not all been plain sailing. There have been challenges along the way, and we’ve not made as much progress on some of our targets as I would have wanted. But this Review demonstrates how Willmott Dixon continues to make a positive impact on communities, the built environment, the construction sector and, increasingly, on policy-makers.

6 TRANSFORMING TOMORROW Willmott Dixon at a glance

History: Founded 1852. Family: Rick Willmott is the ﬁ fth generation to lead the company. Turnover: £1bn. Sustainability: First carbon neutral construction and support services company in the UK. Forward looking: Investing over £1m each year in R&D. People: Investing over £2m annually on staff training. Employing nearly 100 management trainees and 64 apprentices. Thinking locally: 60% of project spend within 35 mile radius. Community: Investing the equivalent of over £1m a year in local communities.

7 Leading responsibly

Chris Durkin is our Group Director for Sustainable Development. Here he answers questions about some of our key sustainable development issues and challenges.

What does sustainable development mean to you?

For me, Sustainable Development is all about achieving social and economic progress while protecting resources – and by resources I mean people, as well as materials, fuel and ecology. It’s a principle which guides us at Willmott Dixon. For us, Sustainable Development is about leaving a positive legacy, in the buildings we construct and maintain, the projects we develop, the communities we serve and in the industry as a whole. This means that sustainability considerations affect everything we do – how we Chris Durkin manage our ofﬁ ces and sites, how we procure goods and materials, how we design Divisional Chief Executive, buildings, how we treat staff and suppliers, how we work with clients and local Willmott Dixon Support Services communities, and how we raise awareness and promote change at a national level on issues we are passionate about.

What are Willmott Dixon’s key achievements for 2012? “Being the fi rst company in our sector to achieve the 2012 has been a great year. The £1.1m that we invested in local communities through Carbon Trust standard was the Willmott Dixon Foundation represents a massive achievement. Adding social another milestone for us, value is something we’ve always done, but the launch of the Foundation means we as it recognised our ongoing are able to capture the good work, and set a strategic direction for what we do going commitment and investment forward. in our carbon management Being the fi rst company in our sector to achieve the Carbon Trust Standard was programme. another milestone for us, as it recognised our ongoing commitment and investment ” in our carbon management programme. Our £1m commitment to our 4Life Academy, which opened in January 2013, is a key way in which we have responded to Birmingham City Council’s strategic priority to improve the skills of residents. It’s our way of putting something back into an area where we repair and maintain 60,000 properties, and deliver some of the West Midlands’ most high-profi le construction projects, including the BREEAM Excellent Birmingham Institute of Art and Design for Birmingham City University.

How does sustainable development ﬁ t with business growth?

There is a strong economic case for investing to reduce our energy consumption and emissions. We estimate that, without intervention, our direct energy costs would rise from £6m in 2010 to £13m by 2014. A more sustainable approach is clearly a more proﬁ table one. For Willmott Dixon, sustainable development is an area where we really do stand out from the crowd, and we are known for operating at its cutting edge. A review of our performance against our main competitors by Bureau Veritas in December 2012 showed that our reputation was well-deserved: our sustainability KPIs rank among the best in the industry.

8 TRANSFORMING TOMORROW There is real potential in the energy market for those specialising in energy effi ciency. As an authorised Green Deal provider we anticipate signifi cant business opportunities over the coming years, as well as a chance to make a difference to the UK’s aging and energy-ineffi cient housing stock. And fi nally, the company, over the last 160 years, has based its business practices on doing not just what is commercial, but what is ethical too. Sustainable Development is at the heart of everything we do because it is fundamental to our values. This in turn helps give clients confi dence in our organisation. It builds relationships with stakeholders, and helps to develop a workforce who are engaged and passionate about the work they do.

What are the challenges for the next 12 months?

Reducing our emissions by 15% by 2014 is a big one. The current economic climate means that costs have fallen and margins are squeezed. In these tough times, clients want the “biggest bang for their buck”, so we are building more for less, and in higher density. We report our carbon emissions relative to turnover, and because we are delivering more square footage per £m, it means we are going to have to work that much harder to achieve the reduction. Making sure that we achieve the best social value on our community investment is another key issue. All resources are tight, so we must target them effectively. How we measure the impact of our social investment is another key question – and one which businesses and academics continue to ponder.

The fi nal challenge is how we can continue to articulate sustainability benefi ts – Tell us what you think particularly those relating to carbon and materials over the life of the asset – to clients who are under huge fi nancial pressure. If you have views or comments on this report, then we’d be glad to hear Sustainability is a big topic. How do you explain and from you. Please send structure what you do so that it makes sense to staff, your feedback to: clients and suppliers? e-mail: [email protected] For us, sustainability fi ts into four key themes: Post Rick Willmott, Putting people fi rst Group Chief Executive, Willmott Dixon Group, Spirella 2, Icknield Way, Responsible business Letchworth Garden City, Hertfordshire, SG6 4GY.

You can ﬁ nd electronic copies Tackling climate change and of this report and further energy efﬁ ciency information about us at www.willmottdixon.co.uk Smarter use of natural resources

This Review is structured around these four key areas.

9 Putting People First

“From reporting this repair to completing it was less than a week.” “Very friendly and professional.” “Pleasant young man who worked well got the job done quickly and left my sink clean.” “The handy-person was a very pleasant man, very helpful. My well-being was his prime concern. Top man.” “The decorator was polite and helpful at all times. He kept me informed on times to expect him each day.”

10 TRANSFORMING TOMORROW Putting People First 11 850 weeks of work experience 64 apprenticeships 30,000 hours of staff time invested in local communities

pupils 4,984 £200 million £200 c project plan for plan for c project in local communities, through through communities, local in for our sites under the Considerate under the Considerate our sites for £1.1m 2009. since accidents eet 2009. since accidents eet , and a reduction of 10 reportable accidents reportable 10 accidents of , and a reduction apprentices (41 in 2011) and invested over over and invested 2011) in (41 apprentices 35.5 40 out of for good causes. good for 0.17 hours of staff time in local communities. local in staff time hours of to a new 4Life training academy in Birmingham in academy training 4Life a new to in training our employees (around £760 per employee). per employee). £760 (around our employees training in . weeks of work experience. work weeks of management trainees. management £1m in their training. We also supported our supply chain to to also chain supported our supply We training. their in 97 decrease in van ﬂ in decrease 850 30,000 £2.3m reduction in car ﬂ in reduction cant reduction in our Accident Frequency Rate (AFR) – (AFR) Rate Frequency our Accident in reduction cant

of construction projects included a speciﬁ construction projects included of

ts.

Invested the equivalent of over over of the equivalent Invested Headlines

Scored an average of of an average Scored Staff raised £96,000 33.2. an industry of scheme – against Constructors average miles 20 our Scape projects within for our budget of half over Spent over of the equivalent – that’s 60 miles) within (88% A 15.7% A signiﬁ to 0.24 from down Provided £500,000 opportunities. apprenticeship provide Committed A 16.3% Invested Invested 64 employed Directly Invested the Willmott Dixon Foundation – the equivalent of 7.2% of our pre-tax of 7.2% of – the equivalent Foundation Dixon the Willmott proﬁ communities. local of economies the in re-invested weeks, and involved placement apprentice 3,413 Created workshops.in Employed from 38 to 28 to 38 from 75% community engagement.

Building positive relationships – with clients, communities, staff communities, clients, – with relationships positive Building maintaining and creating in success our to key – is and suppliers part a vital is First People Putting environments. built sustainable do. we what some of demonstrates section and this culture our of Putting People First People Putting Putting People First Clients

Building enduring relationships with our clients is a key priority for us. We will go the extra mile to ensure our clients are delighted with the 80% projects we deliver. We understand the ﬁ nancial pressures that many In 2012, 80% of the contracts we delivered of our clients are facing, and we work in partnership to ﬁ nd creative through frameworks were solutions that really add value. repeat business

Working with clients to fi nd innovative funding solutions In the current austere climate, many local authorities do not have the money to upgrade public facilities. But they do have land assets that can be used to generate the wealth needed to afford new public amenities. They just need a third party to make it happen. This is where our development division, Regen, comes in. In October 2012 we entered into an innovative partnering arrangement with Westminster City Council, which will see us knocking down two existing sports centres in need of modernisation, building 120 homes on the two sites, and then building a single, larger replacement sports centre. Willmott Dixon benefi ts from the gross development value of the deal, and the council benefi ts from future uplift in sales values of the homes during construction, as well as any surplus land value from both sites. Work starts on This is an excellent site in 2014. “example of how Regen is able to work closely with the public sector to creatively fast-track, design, fund and deliver much needed community facilities through intelligent use of land assets.” Andrew Telfer Divisional Chief Executive, Regen

Artist’s impression of the Westminster development

Few councils are in the position of being able to build “multi-million pound new sports facilities in the current ﬁ nancial climate. But together with Willmott Dixon, we will create a £17m sports centre for residents of Queen’s Park. This will all be done at absolutely no cost to the taxpayer, so represents incredible value for money.” Steve Summers Deputy Cabinet Member for Sport and the Olympics Westminster City Council

12 TRANSFORMING TOMORROW Putting People First

Improving sustainability through BIMM Building Information Modelling is a tool that we use to improve the sustainability of our projects. It helps us manage buildings at all stages of their life-cycle, from initial design to end of life. It captures and coordinates information to help us deliver better quality projects, and gives clients the information they need to manage an asset once it’s been built. In 2012 we used BIMM (here at Willmott Dixon we add an additional ‘M’ for 27% ‘management’) during the pre-construction phase of Carlton Vale, a £7m, 50-unit In 2012 an average of 27% of high-rise residential scheme in Kilburn, North London. The Central BIMM Team carried our projects used BIMM out clash analysis between the structural and M&E designs. The analysis showed 416 clashes – for example, where structural openings had not been left in the structural slabs to accommodate vertical pipes. Had the clashes not been rectiﬁ ed at the drawing stage, it is estimated that the cost of putting them right on site would be around £10,000. Willmott Dixon were early adopters of BIMM, which is going to be a Government requirement on all public sector construction projects by 2016. In 2012 an average of 27% of our projects used BIMM elements. Delivering client satisfaction Capital Works In Capital Works, our clients score our performance across 17 categories, which include creativity, quality, value for money and problem resolution. We benchmark our performance against other construction companies through the Constructing Excellence key performance indicators and we regularly compare performance across operational teams. For projects completing in 2012 we achieved an average overall satisfaction score of 84%. Partnerships In 2012 the average customer satisfaction score across our Partnerships branches was 93.12%.

Willmott Dixon delivered the Town Hall on time and on budget Innovation is a and“ worked seamlessly with our Property and Asset Management critical“ issue – they’re team. We have been impressed by their professionalism and bringing to Rotherham commitment to help us provide an excellent cost-efﬁ cient public ideas that they’re using facility.” elsewhere. In terms of going Cllr Nigel Ashton the extra mile I’ve got to say Leader, North Somerset Council that the workforce is very proactive and positive.” Dave Richmond Director of Housing and Neighbourhoods I think they take their relationships with clients seriously, putting Rotherham Metropolitan Borough in“ a lot of effort… they genuinely care about getting the results Council that I care about. An all-round good outﬁ t. I would recommend Willmott Dixon without a doubt.” Steve Smith Head of Property Services Warwickshire County Council

13 Putting People First Clients

Scape Our long-term partnering approach helped us retain the country’s most-prized sole contractor framework, Scape, from 2013. Scape is a local authority-controlled company, which currently procures on behalf of around 180 public sector clients, ranging from large London boroughs to small free school trusts across the UK. Our collaborative approach has enabled us to develop building solutions which are saving our clients around 14p in every £1 spent on projects procured through the framework.

We know that cost is “a big factor for our public sector clients. And we know that procuring public Oakfi eld primary school buildings can be risky and stressful: according to the National Audit Offi ce and Rather than try and Constructing Excellence “‘make do and mend’, over 50% of public for a little bit more we buildings are delivered late got something much and cost more than fi rst better – a modern thought. Our work with fl exible teaching and Scape means that a lot learning space, which more schoolchildren up minimises its impact on and down the country can the environment both benefi t from having now and in the future. fi rst-rate, sustainable And we got it quickly too learning spaces.” which saved money.” Peter Owen John Harmon Managing Director at Willmott Dixon Assets Strategy Manager Midlands offi ce Warwickshire County Council

14 TRANSFORMING TOMORROW Putting People First

Sunesis – helping our clients save money Sunesis is a new standardised building system developed jointly by Willmott Dixon and Scape. It uses off-the-shelf designs to reduce costs and construction time. Compared to traditional design and build, standardised designs can be built for up to 30% less. Procurement time and fees are reduced and, of course, coming from Willmott Dixon, sustainability comes as standard.

In November 2012, Pupils at Oakﬁ eld Primary School in Rugby moved into their brand new Sunesis school. The old Oakﬁ eld Primary School was built in the 1950s, and was much too small for its growing population. Originally, Warwickshire County Council planned to extend the school at a cost of around £2m, but for an extra £200,000 they were able to buy a brand new Sunesis school. The 1,172m2 building cost £2.2m and was built in just 32 weeks. The Sunesis model allows councils to access a range of prices and options. Clients can customise their chosen building, adding in features like photovoltaic panels, rainwater harvesting and cladding, in much the same way as people choose the options on a new car. 30% Sunesis allows for a saving of The new school has been a hit with pupils and staff alike, and now new Sunesis schools are up to 30% on traditional design being built and planned at sites across the country. and build costs The Sunesis range includes standardised systems for leisure, care and health.

We are absolutely “delighted… the construction team have listened to our needs and ideas from the beginning.” Heather Fielding Headteacher Oakﬁ elds Primary School

There’s no other “comparable product Adopting this approach has A valuable response that can deliver a fully signiﬁ“ cantly reduced the time that “to the challenges designed school to the authority has spent in design of delivering new meet the fast track and procurement. Simply put, it’s a schools.” programme.” far better way of doing business. The Design Council CABE, Cllr Wright ” Portfolio holder for Resources and Oliver Gill the Government body which promotes design and architecture Corporate Governance Strategy and Capital Programme Manager Warwickshire County Council Southampton City Council for the public good

15 Putting People First

£1.1m In 2012 our total investment in local communities was the equivalent of £1.1m - over 7% of our pre-tax proﬁ ts

16 TRANSFORMING TOMORROW Communities Putting People First

As a responsible business we want to make a positive difference in the community. So we seek to add social value to every contract we deliver. The nature of our community activities varies enormously, according to the community’s needs. In 2012 we provided local employment, work experience and apprenticeships, refurbished community buildings, spent millions of pounds locally, opened a £1m skills academy, arranged trips to the seaside for inner city children – and a lot more besides. The total value of our investment was the equivalent of £1.1m.

We also have a strong tradition of supporting good causes. Last year Willmott Dixon gave £320,000 in money and gifts in kind and our staff raised nearly £100,000 for UK charities. Our supply chain was active in its fundraising through our Foundation, too, raising over £30,000.

Supporting the local community We employ over twenty people whose role is to liaise with communities and organise volunteering activities. We also encourage staff to play an active role in their communities. We believe that our organisation beneﬁ ts from the strong relationship focus that employees gain from these activities. Supporting the local economy 3413 We want to promote an environment where money is earned and spent locally, where apprentice placement weeks people make a greater economic contribution to their community and where social created on Scape projects infrastructure supports community cohesion. We aim to provide work and skills opportunities wherever we can. For each project delivered through the Scape framework, we develop an employment skills and community engagement plan, detailing how we will initiate and support educational, environmental, social and economic activities. 50% of Scape project budgets spent In 2012 over half of the budget for our Scape projects was spent within 20 miles (88% within 20miles of the project within 60 miles) – meaning the equivalent of over £200 million was reinvested in local communities. 55% of our labour force lives within 20 miles of site. For each project we establish a contact within Jobcentre Plus for each project and create 4 job opportunities for every £1m spent. Through Scape we have created thousands of apprentice placement weeks, and involved 4984 pupils in workshops. Providing skills and local employment In 2012 the recession continued to hit young people particularly hard. Providing skills Partnerships apprentices and local employment was one way in which we helped to transform communities.

17 Putting People First Communities

Spending locally I am sure this scheme, Our team in Redcar have put local spend together“ with others at the top of the agenda. In November already on the way, 2012 they took delivery of steel for the will be the catalyst £31m Leisure and Community Heart project. for the economic growth not only for Most of the steel for the project has been Redcar but for the sourced from the nearby Teesside Beam Borough as a whole. Mill at Lackenby, famous for providing ” beams for Canary Wharf, Heathrow Lee Savage Airport’s Terminal 5 and the new World Head of Economic Growth Trade Centre in New York. The remaining Redcar & Cleveland Borough Council circular section beams have been processed in Hartlepool.

Leaving a long-term legacy In July 2012 our Rotherham Partnerships team transformed the local special care baby unit. Tired and outdated facilities were replaced with bright and modern rooms, providing a welcoming place for families to stay overnight with their babies. Angela Grifﬁ ths, ward manager, said: “We can’t thank Willmott Dixon enough, they are a brilliant company. It’s been a pleasure to work with the team and they have left behind a legacy that will be welcomed by parents and babies for years to come.”

Rick Willmott opened the new Willmott Dixon Parents’ Suite at Rotherham Hospital

Investing in the community Our Birmingham Partnerships team Willmott Dixon… invested £10,000 in time and materials “have performed miracles… to transform a decaying former WW1 The improvements have barracks that was home to a Birmingham Scout group. The south Birmingham delivered beneﬁ ts for the branch jumped to the aid of the 100 local community and will year old Bartley Green Scout Hut after help to ensure the future an urgent appeal. They refurbished of Bartley Green Scout The Lord Mayor opens the refurbished Bartley Green the toilets, constructed a new disabled Group. Scout Hut access, redecorated the hut and built a ” Andrew Hitch new outdoor barbecue area. Then they Group Scout leader arranged for painting and decorating students from South Birmingham College to get ‘hands on’ experience by repainting the building’s weather-worn exterior.

18 TRANSFORMING TOMORROW Putting People First 19 ” ” In these days of high of In these days The new Willmott The Willmott new ve-a-side charity at football youth unemployment it is it unemployment youth schemes local that essential regeneration the Dee Park like for opportunities offer should young people... “ Lovelock Jo Councillor Chair of the Dee Park Board and Leader of Reading Borough Council “ The Rt Hon Jack Dromey MP Dixon 4Life Skills Academy 4Life Dixon Birmingham, for news good is the next generation providing skills and the vital with build needed to training and the Birmingham West Midlands. nd nitely nitely rst construction rst rm commitment the West to ting the wider community. Students Ebbw Vale Leisure Centre. Our which event, Vale sawEbbw the supply chain along teams enter with our own, raised £1,500 a specialist for community palliative care serving team communitiesvalley within South Wales. Back of the net for our Cardiff fund-raisers our Cardiff for the net Back of In Willmott 2012 Dixon staff from Cardiff organised a fi ciency, as well as employability skills such as IT and companies approved as a registered training BPEC centre provider. Midlands, where nearly we employ 1,000 people and are responsible the for long-term repairs and 60,000 maintenance of properties Birmingham for City Council. The Willmott Dixon Academy 4Life is now working with City and & Guilds the British EnterprisePlumbing after Council (BPEC) we became one the of fi CV writing. A series community of programmes and DIY sessions will also be run at the centre. The Willmott Dixon Academy 4Life will also act as a national centre excellence of thefor company across the UK. It demonstrates our fi can courses take on technical trade skills, emerging technologies, and health safety, energy and effisupervisor skills In 2012 we committed theIn development 2012 to a new £1m training of academy which 2,000will up to give people skills. a year lifelong The which opened Academy, 4Life in January supports 2013, the development our of 22 Birmingham apprentices, as well as benefi A new 4Life Academy for the people of Birmingham of the people for Academy 4Life A new Getting young people started on the right track track started on the right people young Getting There are high levels unemployment of in Dee Park in Reading, whereare we working a on took we 2012 in Week Apprenticeship National During project. regeneration a on apprentices. new of number and plumbing workingStudying part-time was Shannon in a shop, struggling (18) fi to an apprenticeship: been “It’s hard. I spent really months calling companies plumbing but learning Now nothing. loadsgot I’m at work, supervisor my good is really and everyone is help the willingalways to only me. girl at the I’m on moment, site but defi I would encourage more girls trades go into to and the business.” building Putting People First

Willmott Dixon Partnerships is one of“ the most inspirational businesses that I have ever worked with. The company has a set of core values that underpin the culture and the impact of these is huge. During the assessment I found many inspiring examples that demonstrate the company’s core strengths and its commitment to people’s development and progression.” Simon Baylis, the specialist who led Partnerships’ 2012 Investors In People assessment

20 TRANSFORMING TOMORROW Staff Putting People First

Our success depends on the skill, knowledge, integrity and commitment of our staff. So we make sure they have the training “What I do know… they need to help us remain industry leaders. We give them the is that when our staff are tempted to join opportunity to reach their full potential. We recruit those who other organisations for best exhibit the Willmott Dixon values, and we provide a working promises of more money environment that makes them want to stay and give of their best. and enhanced prospects, they often subsequently At Willmott Dixon we employ and invest in young people to ensure that our company will return to Willmott Dixon have a strong supply of skills and leaders in years to come. We employed 97 management where they know they can trainees in 2012, and directly employed 64 apprentices – increasing our 2011 average by over a third. rely on our word and our commitments. In 2012 we continued to increase the amount of money we invested in training our staff. ” Rick Willmott Our aim remains to be the best company, across all of our industry sectors, in which to Group Chief Executive develop a career. 2012 saw strong results from our staff survey. Willmott Dixon

Staff survey results 80% 84% 81%

Over 80% of staff said they 84% of staff were proud 81% said they’d recommend Willmott enjoyed their job. to work for the Group. Dixon as a good place to work.

Developing our apprentices In 2012 we invested over £500,000 in training our 64 directly employed apprentices. Students who have undertaken work experience with us are encouraged to apply for apprenticeship vacancies. Apprentices are often offered training to become company Construction Ambassadors, working with schools and youth centres to talk to young people about careers in the industry. All apprentices are normally offered permanent employment on completion of their training.

Construction Manager of the GOLD SILVER Philip Cracknell, Andrew Miles MCIOB, Year Awards Haggerston School, London E2 General Ofﬁ ces, Ebbw Vale, Gwent Two of our employees received gongs at these prestigious awards. This is what the “Phil’s value engineering was “Andy’s commitment was total. He went judges said: instrumental in making the £1m savings beyond the call of duty, particularly in needed to bring the budget back in sight. community engagement. Patient and With umpteen balls to keep in the air, conﬁ dent, he never lost sight of the Phil showed himself an assured juggler. ultimate project goals, and delivered on He thought on his feet, motivated the all the promises.” team, reassured the client and users, and always found solutions.”

21 Putting People First Staff

Equality, diversity and inclusion They [Willmott Dixon] We have always believed that diverse, complementary teams are the most effective. developed“ Michael’s Our equality, diversity and inclusion charter sets out our commitment to ensuring apprenticeship programme Willmott Dixon remains a place where employees feel challenged, contented and included. by drawing on his strengths, Our workforce remains signiﬁ cantly more diverse than construction industry averages. which is an excellent In early 2012 we won the right to use the two ticks disability symbol to show that we example of job carving, are positive about employing people with disabilities. As an industry member of the whereby the employee UK Contractors’ Group’s Diversity Group, we are committed to raising standards across and company both get the industry. the very best out of the Staff gender proﬁ le Staff from minority ethnic backgrounds relationship.” Suzanne Eusman, Specialist disability 13% 18% 5% 7% and employment lead for Autism Plus Female Female

National average Willmott Dixon 2012 National average Willmott Dixon 2012

Health and safety is everyone’s responsibility Our aim is to prevent all accidents. In 2012 we rolled out the Willmott Dixon All Safe campaign – a cultural ethos for all staff and suppliers that it is everyone’s responsibility to behave and operate safely. Through a programme of toolbox talks, branding and site inductions, it’s instilling a mind-set that any short-cuts or unsafe practices will not be tolerated, and that it’s everyone’s responsibility to ensure situations are ﬂ agged up and dealt with. Our All Safe programme is based on four key principles:

Value Belief Attitude Behaviour Everyone has a zero Everyone looks out No one should All accidents can be tolerance of unsafe for themselves and suffer pain prevented behaviour others

Our record of 28 reportable accidents in 2012 compares well to the industry average. SafeDriver Total reportable (RIDDOR) We continue to prioritise health and safety by: We launched our SafeDriver injury accidents programme in the autumn of 2010 • Using robust procedures implemented through 50 to improve driver safety and reduce our Group-wide OHSAS18001 certifi ed health accidents. In 2012 we saw a 16.3% and safety management system. 40 decrease in van fl eet accidents and a • Using policies, training programmes and targeted 15.7% reduction in car fl eet accidents, 30 communication. compared to our 2009 benchmark • Encouraging the sharing of lessons learned. 20 • Regularly reviewing our practices and policies. 10

• Providing training to ensure our supply chain 0 contractors have the correct level of competency. 2008 2009 2010 2011 2012

22 TRANSFORMING TOMORROW Suppliers Putting People First

We want to make sure that the goods, works and services we procure are as sustainable as possible. So we engage regularly with our suppliers to keep up to date with their latest products and innovations. We aim to support them with information, advice and training to help them provide us with what we need.

In 2012 we were one of the few contractors to sign the Government’s Prompt Payment Code. We recognise that consistent payment to our supply chain is essential to help them manage their cash ﬂ ows and ensure they are able to continue delivering work for us. In 2012 we provided additional reassurance for our supply chain through a new online portal where they have 24/7 access to their account status and history via a secure area of our website. The Supply Chain Sustainability School Understanding and navigating the sustainability agenda is critical if contractors and suppliers are to remain competitive. But it can be a challenge – especially to smaller businesses. That’s why we have collaborated with a number of other major contractors in support of the Supply Chain Sustainability School. The school was launched in June 2012, with a grant from the Construction Industry Training Board (CITB). Its aim is to provide a consistent approach to sustainability, and reduce the burden of training. This will enable suppliers to access new markets and support the UK sustainability agenda, and help companies like Willmott Dixon deliver better buildings for clients.

Suppliers questioned the panel of experts at a recent Supply Chain Sustainability School event

Rewarding excellence We offer a variety of awards to encourage our suppliers to come up with sustainable solutions. This picture shows Armstrong Ceilings UK winning a sustainability award from our Interiors Division for the take-back scheme they ran on our £10.6 million ﬁ t-out of the new London School of Economics building. The scheme allowed us to recycle the ceiling tiles which would otherwise have been sent to landﬁ ll.

Roy Gleiwitz, Business Development Manager for Armstrong Ceilings, collects the award

23 Responsible Business

24 TRANSFORMING TOMORROW Responsible Business

As an industry leader in sustainable development we believe we have a key role to play in strengthening the sector as a whole. We want to raise standards, increase collaboration, boost building design, inﬂ uence public policy, and increase the social value of construction and maintenance contracts. As industry leaders, we also need to set an example. This section shows how we are working across and beyond the sector to raise standards, and how we ensure that our

operations meet the highest standards. Responsible Business

Headlines £1.3m In 2012 we continued our Launched the Willmott Dixon Foundation to provide a strategic commitment to investing £1.3m a direction for our social investment. year in research and development Published ‘Transforming Communities’ – a report which articulates how public sector organisations can use their buying power to drive jobs and growth into local communities. Continued to invest £1.3m a year in research and development. IEMA We became a member of the Increased our presence on inﬂ uential industry groups. Institute for Environmental Management and Assessment Became a corporate member of the Institute for Environmental (IEMA) Management and Assessment (IEMA). Increased our reporting capabilities by developing better systems for monitoring and measuring our performance. One of the top ﬁ ve sustainable house builders in the UK, based on the national sustainable housing benchmark, NextGeneration. 100% of projects were registered with Considerate Constructors’ Scheme.

25 Responsible Business Leading sustainable development in the UK

Research and innovation Research and development is essential to the success of our industry, so we invest around £1.3m in R&D every year, and we are involved in around 20 initiatives and collaborative projects. We have used the fi ndings from these projects on our current sites across the UK, for example, to increase understanding of the energy performance gap between predicted and actual performance. We have also undertaken extensive work to understand the life-cycle embodied carbon impacts on our Sunesis Keynes standardised school design. We spent nearly £100,000 on low carbon research at our healthcare demonstration building at the Building Research Establishment (BRE) in Watford, including the installation of a translucent building-integrated photo-voltaic glass roof. We continue to support and invest in the development of Passivhaus approaches in the UK. We are a founder member of the Passivhaus Trust, and a member of its technical The Willmott Dixon Community Healthcare Campus at the Building Research Establishment panel, making us one of the few companies with the expertise to deliver large-scale Passivhaus projects. Re-Thinking how we work We are one of the few construction companies with their own dedicated sustainability £100k consultancy. Our Re-Thinking team, which has extensive experience in environmental We spent nearly £100,000 on and social science, drives performance by identifying sustainable solutions, sharing best research at our demonstration practice, ensuring that we monitor and report our sustainability performance with rigour. building at the BRE The team also works directly with policy makers and infl uencers. Supporting groups which share our values We support social enterprises, charities and action groups which share our aims. These include: “Next Generation The Prince’s Trust: We support this charity by providing work experience opportunities benchmarks the and funding to socially excluded young people. sustainability performance Construction Youth Trust: We provide work experience to disadvantaged young people of the UK’s largest 25 home aged 14-30, helping them into education and employment in the construction industry. builders and Willmott Dixon are consistently among the The Future Melting Pot: We work with this charity, which gives young people a voice and a positive platform, particularly to those who fi nd it hard to engage meaningfully with best performers in this fi eld. traditional businesses and networks. They are to be commended for their part in leading the Energy Bill Revolution: We support the campaign to persuade Government to use the way for sustainability in money it gets from carbon taxes to help make homes more energy effi cient, bringing people out of fuel poverty, cutting carbon emissions and creating jobs. the sector. ” Action for Children: We are currently developing a partnership with Action for Children, Philip Hirst, Associate Director - Upstream Sustainability Services, Jones a charity which supports vulnerable and neglected children and young people. Lang LaSalle

26 TRANSFORMING TOMORROW Shaping the future of the built environment Willmott Dixon is active in some of the sector’s most inﬂ uential and important organisations, keeping us up to date on industry-wide developments and giving us the opportunity to develop and share ideas. We work with, and have strong links to, the following organisations:

Aldersgate Group Grown in Britain

Rob Lambe, Managing Director for Steve Cook, Principal Sustainable Responsible Business Re-Thinking and Energy Services, is a Director Development Manager is heading up a of the Aldersgate Group, an alliance of leaders group of the country’s leading contractors from business, politics and society that drives who are looking at how they can create action for a sustainable economy. more demand for home-grown timber. The Green Construction Board Next Generation Rob Lambe is Chair of the Knowledge and We are a member of this group which Skills Group for this body, which comprises benchmarks many of the UK’s largest Government and industry representatives, home-builders, overseen by a high level working collaboratively to drive forward Executive Committee of the World Wildlife the actions set out in the Low Carbon Fund UK and the Homes and Communities Construction Action Plan. Agency. UK Green Building Council (UKGBC) Carbon Trust Divisional Chief Executive John Frankiewicz We continue to engage with this is a trustee of the Green Building Council, a organisation on managing and reducing membership organisation which campaigns our emissions. The Trust provides advice for a sustainable built environment. to businesses, governments and the public sector. Forum for the Future We work with this independent non-proﬁ t Energy Saving Trust organisation which works globally with We work with this social enterprise which business and government to inspire new provides advice on reducing carbon thinking, build creative partnerships and emissions, using water more sustainably develop practical solutions. and saving on energy bills. UK Contractors’ Group (UKCG) Considerate Constructors’ Scheme Rob Lambe chairs the Environmental sub- We are registered with this non-proﬁ t group of the UK Contractors’ Group (UKCG), organisation, and our sites comply with and Principal Sustainable Development their codes of considerate practice. Manager Steve Cook chairs the UKCG’s Constructing Excellence Materials Task Group. The UKCG is the We are a member of this organisation, primary association for contractors operating which aims to improve industry in the UK, representing over 30 leading performance in order to produce a contractors. better built environment. Business in the Community We are a member of this business-led charity which brings together over 330 of the most senior business leaders from UK and global companies to help build resilient communities, diverse workplaces and a more sustainable future. We achieved Gold status in their Corporate Responsibility Index in 2012.

27 Responsible Business

Putting the case for the construction sector In July 2012, Capital Works CEO John Frankiewicz shared a platform with Government ministers at the Government Construction Summit. He talked about the importance of the construction industry’s role in UK Plc and set out how construction can be a catalyst for wider economic growth. A new public-private model for economic growth In 2012 we ran a year-long programme of events for local government focussing on localism, encouraging councils to discuss the challenges they face in the current economic climate, and to explore potential solutions. Asked about their views on barriers to local development, 25% of councillors pointed For Local Enterprise to ﬁ nancial constraints and 18% cited housing. Nearly half of councillors pointed to low Partnerships“ to fulﬁ l their levels of skills in the local workforce as the main barrier for inward investment, with 41% potential in supporting local also highlighting concerns over transport links. Low levels of education (31%) were a economic development, both concern, as was a lack of suitable property options (30%). public and private sectors need to do more to build trust and cooperation… It’s about building mutual recognition of the respective strengths of both public and private sectors in creating development opportunities that create growth and jobs.” John Frankiewicz Divisional Chief Executive Willmott Dixon Capital Works

Localism event with John Frankiewicz, Jonathon Porritt and Sir Howard Bernstein

Transforming Communities In 2012 we published ‘Transforming Communities’ – a report which outlines how private sector organisations can add social value through the contracts they deliver. It’s a view based on Willmott Dixon’s 160 years’ experience of investing in local communities. The publication was sent to over 2,000 of the UK’s key decision makers and was Education Minister Lord Hill visits Oakﬁ eld School, Rugby featured in numerous publications.

28 TRANSFORMING TOMORROW Leading a sustainable business

The Willmott Dixon Foundation: a strategic approach to giving In 2011 we established the Willmott Dixon Foundation as the vehicle through which we add social value. In 2012, the Foundation brought a more structured approach to our “I believe how long-established programme of community investment. It has made us consider where companies engage with we as a business can add particular value, and is informing our thinking about how we their communities, using measure the success of that investment. their resources to drive Tackling social exclusion and antisocial behaviour is an area where we think we can make skills and jobs that leave a particularly strong contribution. A large part of our social investment focusses on real legacy, is going to enhancing communities. Much of our engagement is with young people – schools, open be critical for businesses Responsible Business days, work experience. We believe that skills can change lives and we invest heavily in over the next decade. training – both for our staff and in the wider community. We are committed to increasing ” Chris Durkin apprenticeships year on year. Divisional Chief Executive, Raising awareness and promoting change will become an increasingly important part of Willmott Dixon Support Services the Foundation’s work. We want to lead the way in showing how businesses like ours can transform the communities in which they work. We want to show that social exclusion can be overcome when young people are given skills, opportunities and aspiration. We hope that if we do this, we may be able to inspire others to do the same. A 2012 review of the Foundation can be found at www.willmottdixongroup.co.uk/foundation-review

Business in the Community In March 2012 we achieved the Gold standard in the Business in the Community’s Corporate Responsibility Index, with a score of 93%. Companies that achieve Gold are able to demonstrate openness and transparency through effective public reporting of their environmental and social issues, corporate responsibility programmes and performance. They also expand and adapt their risk management processes by incorporating relevant aspects of corporate responsibility risk and opportunity, and their strategy is articulated in an effective manner, including clear and measurable targets. Sharing innovation and best practice The diverse nature of our work means that Willmott Dixon is divided into divisions, so that people can specialise in a particular area. But we also want to share innovation across the Group. So we have a number of forums which bring together specialists who New technology and seek to improve corporate performance by sharing knowledge. These include: innovation“ means that • Sustainability Forum sustainability is a fast moving area. Through the • Environmental Forum Sustainability Forum I can • Health and Safety Forum share the lessons learned • Community Forum from the projects I have • Commercial Strategic Team worked on, and acquire • Pre-con Strategic Team new knowledge.” • Operations Strategic Team Richard Bartlett 2013 sees the development of Sustainability Manager, Willmott Dixon a new network of sustainability The Willmott Dixon Environment Forum meets to champions within our Partnerships share best practice Division, to drive best practice.

29 Responsible Business

Capturing our performance We have robust systems in place to help us capture our performance, and in 2013, we will launch a new dashboard which will make reporting more accessible and transparent within the business. • Environmental Data System Captures environmental data for our sites, including waste, energy, water, diesel and biodiversity. • Carbon Data Capture Captures emissions data from our sites, ofﬁ ces, transport and energy usage.

How we capture our performance DASHBOARD To be launched 2013

Transport Timber Biodiversity ENVIRONMENTAL CARBON DATA 10 PSPC DATA SYSTEMS Electricity CAPTURE Ofﬁce Electricity Community Water Diesel Waste Ofﬁce Gas

The 10 Point Sustainable Project Criteria (10PSPC) This helps us measure all our capital works schemes against a range of social, economic and environmental sustainability indicators. We set more exacting standards each year, to drive improvement. Bonus payments based on regional performance provide an incentive for staff.

2010 2011 2012 We use the criteria during project launch 1 Client commitment to a workshops to identify the relevant sustainable sustainable project Yes Yes Yes development issues. From there we develop a 2 BREEAM rating Excellent Excellent Excellent sustainability action plan which helps provide a Code for Sustainable Homes Level 3 Level 4 Level 4 clear understanding of actions and responsibilities, and then we audit each project annually. 3 Sustainability action plan Yes Yes Yes 4 Energy Performance B B A All site inductions include information on our Certiﬁcate rating BBB sustainability strategy and policy objectives relating to waste, energy, water, ecology and sustainable 5 Recycled content by value >25% >25% >25% procurement, and each site has a member of staff >85% >90% >95% 6 Waste diverted from landﬁll to ensure sustainability measures are implemented, 7 Sustainability health checks & and to drive best practice. post-occupancy evaluation Yes Yes Yes In 2012, the average performance of Capital Works 8 Life-cycle cost and life-cycle assessment undertaken Yes Yes Yes projects measured against this challenging matrix was 67%. At the end of 2012 we reviewed the plan 9 Considerate Constructors Scheme undertaken >34 >34 >34 and set new, more challenging targets. 10 Community project A similar model will be launched within our Yes Yes Yes Partnerships Division in 2013.

30 TRANSFORMING TOMORROW Auditing our ﬂ eet We are signed up members of the Energy Saving Trusts’ ‘Motorvate’ scheme. Each year our ﬂ eet performance data and reporting processes are externally audited by the Energy Saving Trust.

Managing our environmental impact The processes we use to manage our environmental impact at each stage of our project processes, from design through to handover, are underpinned by our ISO 14001 certiﬁ ed Environmental Management System. In 2012 our Capital Works projects were regularly Responsible Business audited. The BSI auditors were satisﬁ ed with our implementation of both the ISO 9001 and 14001 management systems.

Considerate Constructors The Considerate Constructors scheme measures the impact of works on the environment, the community and the workers. In the assessment of our house building business during 2012 by NextGeneration we had the highest average score on the scheme. In 2012, across our Capital Works business as a whole, our schemes scored an average of 35.5 points out of 40, against an industry average of 33.2. This compares favourably to our 2011 achievement of 35.1.

Capital Works Considerate Constructors’ Scores for 2012

Considerate Environment Appearance A Good Neighbour 4.42 4.48 4.44 4.45

Respectful Safety Responsible Accountable Total score 4.44 4.49 4.38 4.38 35.47

Corporate members of IEMA In December 2012, our environmental sustainability leadership was recognised by the Institute of Environmental Management and Assessment (IEMA), who accepted us as Corporate Members. Membership means that we can work in partnership with IEMA on training programme accreditation, horizon scanning and policy development. Corporate Membership also brings practical guidance for environmental sustainability professionals.

31 Tackling Climate Change and Energy Efﬁ ciency 1st In 2012 we became the ﬁ rst carbon neutral company in our sector

32 TRANSFORMING TOMORROW Tackling Climate Change and Energy Efﬁ ciency

Here at Willmott Dixon we are leading the way in low-energy building design, low-impact construction, energy-efﬁ cient repairs and maintenance and retroﬁ t.

At the same time, we recognise that we need to address the carbon emissions resulting from our operations. We continually seek more energy-effi cient working practices, to help us reduce our carbon emissions, and help us save money on our energy and fuel bills. Our work and investment into reducing emissions was recognised in 2012 by the Carbon Trust. We were the fi rst company in our sector to achieve the Carbon Trust Standard. We were also the fi rst company in our sector to declare carbon neutrality in accordance with PAS 2060.

Headlines Became the fi rst construction company to achieve the Carbon Trust Standard. Offset our 2012 emissions to become the fi rst carbon neutral construction and support services company. Overall carbon intensity increased by 6.5% from 2011 to 2012. Tackling Climate Change and Energy Effi A 5g CO2/km improvement in fuel effi ciency for our car fl eet. £57,000 paid out as a green bonus to 104 employees for choosing lower carbon cars. The built environment accounts“ for around 50% 10,000 miles claimed under our bicycle reimbursement scheme. of all UK emissions. 142,000 miles claimed under our car sharing mileage reimbursement So companies like ours scheme. can play an important part in helping our country Invested £240,000 in fi tting a range of energy improvement measures meet its target of reducing across our offi ce estate. greenhouse gas emissions ciency 87% of our housing units comply with Life Time Home Standard. by at least 80% by 2050.” 88% of construction projects completing in 2012 achieved at least Rob Lambe Managing Director an EPC B rating with many achieving an A rating. Energy Services and Re-Thinking Post-occupancy evaluations are planned for 86% of non-domestic construction projects completed in 2012. We assessed the energy performance of over 4,000 homes in the social housing sector and provided them with energy performance certifi cates.

33 Tackling Climate Change and Energy Efﬁ ciency New build

The greatest positive impact we can have on climate change is through the energy-efﬁ ciency and effectiveness of the buildings we construct, refurbish and maintain. We remain committed to researching and developing low-carbon building design and we continue to research, develop and employ innovative construction solutions and technologies.

We always aim to improve the sustainability of our developments without incurring Houghton-le-Spring Primary Care Centre, Sunderland, the UK’s ﬁ rst BREEAM outstanding further costs to the project. So we work with clients to develop sustainability strategies health facility which are achievable within project constraints. On the buildings we construct we include features which encourage the use of more sustainable forms of transport, such as cycle spaces and on-site electric car charge points. For some of our projects we also include the option of a residents’ shared car club. Our development arm be:here builds large-scale developments for rent by working professionals. Home ofﬁ ce working provision comes as a standard feature in each unit they build. Post-occupancy evaluations are planned for 86% of non-domestic construction projects underway in 2012.

Dwellings built and planned in 2012 complying with environmental assessment standards

Certiﬁ cation Level Number of units Good 32 Very Good 129 Eco Homes Excellent 8 3977 41353 Code for Sustainable Homes 518 Passivhaus 53 Very Good 340 BREEAM Multi Residential Excellent 265 Total units 3175

Non-domestic projects achieving BREEAM in 2012 Level achieved

Outstanding Excellent Very good

34 TRANSFORMING TOMORROW Helping Camden Council raise the bar on sustainability When Camden Council asked us to help them achieve their vision of a sustainable Camden that adapts to a growing population, we jumped at the chance. Our clients wanted us to build a 53-home development that will be the UK’s largest residential scheme so far to meet the Passivhaus standard. As a founder member of the UK Passivhaus Trust we were well placed to deliver the UK’s largest Passivhaus residential project. With rising energy prices, “consumers will soon be Passivhaus is a German concept which sets a very high standard for energy use. Once completed, to anyone walking past, Camden’s Chester Balmore will look no demanding more energy different to any other development. But underneath, it’s a different story. Chester efﬁ cient buildings, so Balmore uses a lot of insulation, very low thermal bridging and very high levels of Passivhaus is something airtightness. It’s a challenging project which has seen us undertake very careful energy we expect to see more of software modelling, working closely with our in-house team of Passivhaus designers. in the future.” Chester Balmore is due for completion in late summer 2013. Ben Shuster, Energy Solutions Engineer and certiﬁ ed Passivhaus designer

Building a carbon-negative in-use school in North London This learning and recreational environment built in Crouch Hill for Islington Borough Council has an A+ energy performance certifi cate (EPC) rating. The school is rated BREEAM Outstanding. BREEAM is the most widely used environmental assessment Tackling Climate Change and Energy Effi method for non-domestic buildings. So how did we achieve this rating? All the buildings on the site were designed to be low energy and low carbon. We used very high levels of insulation. All classrooms use an ‘e-stack’ low energy ventilation system which provides heat recovery in winter and safe night-time cooling. We installed controls to monitor and respond to CO2 and temperature levels. We used low-energy lighting systems and electrical goods. We reduced the need for artifi cial lighting by orientating the building southwards to maximise natural daylight, and by using solar glazing and shading tailored to the orientation of each elevation. ciency A gas powered combined heat and power (CHP) network delivers heat and power to There are not many buildings out there the buildings and park lighting. During winter, a biomass boiler provides top-up heating. with an EPC A+ rating! Excess heat is used to heat an adjoining blocks of fl ats.

Building a BREEAM outstanding school The multi-award-winning Hope Academy is one of the most highly speciﬁ ed education buildings in the UK and Europe. It achieved a BREEAM Outstanding rating. Wind turbines provide the school’s off-peak electricity, photovoltaic panels generate energy, and heating and hot water are supplied by renewable biomass sources on site. The wind turbines installed during the construction phase powered the site and works. The resultant site was zero-carbon – a very rare occurrence for the construction industry. A partnership with the Lancashire Wildlife Trust ensured that external areas provided wildlife and habitat areas, both for species protection and as learning environments for the students.

35 Tackling Climate Change and Energy Efﬁ ciency Retroﬁ t

Retroﬁ tting existing buildings is a key way in which we can help reduce the UK’s carbon emissions.

It is estimated that around 80% of homes standing today will still be in use by 2050. Estimates suggest that we will need to retrofi t one house every 45 seconds for the next 37 years in order to meet the Government’s de-carbonisation target. The retrofi t market therefore represents signifi cant opportunities to the construction industry. In-house energy expertise Our team of energy services experts is dedicated to achieving low carbon solutions for property – and saving our clients money on energy costs. They work on all types of property – commercial and domestic, publicly and privately owned. The low-carbon retrofi t solutions we provide include thermal fabric improvements, draught-proofi ng, renewable technologies, lighting and heating. As a registered Green Deal Provider, we are well positioned to deliver works either under the Green Deal or through ECO (Energy Company Obligation) funding. Addressing the performance gap The gap between projected actual thermal performance is a key issue for construction companies. A recent survey of 24 houses revealed percentage discrepancies of between 5% and 200% between predicted and measured thermal performance. We continue to lead research in this area, and have identifi ed a number of potential Thermal imaging of house before (top) and after (above) retrofi t reasons for the performance gap in all phases of a building project. We continue to identify where we can strengthen our processes to make sure that our buildings perform as designed.

The performance gap The Green Deal Workmanship issues Reputational issues At a policy level we have been RISKS integral in the development of Rising energy prices Green Deal and ECO, the energy Design problems efﬁ ciency subsidy initiative. In April User comfort 2012 we signed an agreement with Government to be a Pioneer Green Deal Provider. So when The Green Deal was launched in January 2013 End user variation Performance Gap following a four month pilot phase, it marked a key milestone for our OPPORTUNITIES new Energy Services company. Increased rental/sales Retroﬁ tting properties, through Manufacturer claims the Green Deal, and through other Energy performance funding mechanisms, is an area in contracting which we expect to see real growth Immediate commissioning over the coming years. Enhanced reputation

36 TRANSFORMING TOMORROW Public building retrofi t project of the year: North Somerset Council Town Hall North Somerset Council’s Town Hall, winner of the ‘Public Building Retrofi t Project of the Year 2012’, was the fi rst retrofi t in the country to achieve an EPC rating of ‘A’. We achieved this by transforming a 1970s building into a dynamic open plan layout which incorporates the local library, council offi ces and the hub for police enquiries. We used a number of different technologies. We used cold aisle containment units to control the temperature of the IT servers. We made sure the building used as much natural light as possible, supplementing this with active LED lighting. The central atrium Alasdair Donn receives the ‘Public Building Retrofi t was used to combine conventional methods of temperature control with natural Project of the Year’ award ventilation. 240m2 of photovoltaics provide 8% of the building’s energy needs. The heat pump heating/cooling in ground fl oor areas provides 7.4% of the building’s thermal energy demand. The building’s total carbon emissions are expected to reduce by 60%, saving approximately £700,000 a year in energy bills.

Installing energy effi cient measures We have extensive experience in managing energy effi ciency retrofi t schemes across a range of programmes. These have included ECO, CERT & CESP, Renewable Heat Incentives, Feed-in Tariffs and other funding sources. Tackling Climate Change and Energy Effi A recent example is the work we are doing for the Welsh Government. Through the three year ARBED programme, which started in 2012, we are installing energy-effi cient measures to more than 2000 homes. Another example is the work we are doing through our RE:NEW framework with the London Authority, where we visited over 8,000 homes in North and West London, fi nding homes which required further insulation, heating and Micro-generation solar panels low energy measures, and encouraging the household to take up those measures. Certifi ed installer of micro-generation technologies We are an approved installer for a range of micro-generation technologies under the Micro-generation Certifi cation Scheme. This means that the qualifi ed tradespeople who ciency work in our Partnerships Division can install and maintain technologies and heat from renewable sources. Energy performance certifi cates Through our Partnerships contracts, we carry out maintenance and repairs whenever there is a change in tenants, to make sure the home is up to standard. We also have to provide the new tenants with an Energy Performance Certifi cate (EPC). In 2012 our Partnerships Division issued 4000 certifi cates. The work provides the team with more opportunities to reduce the carbon emissions of the stock, by identifying retrofi t opportunities, and by engaging with householders, giving them energy saving tips. Post-occupancy evaluations Post-occupancy evaluations are a key way in which we gain greater understanding of the end-user energy consumption on our projects. Our comprehensive evaluation combines an occupant survey, interviews and a range of energy consumption data, to identify what lessons can be learned. The resulting report provides us with invaluable insight and information to feed back into the design and build of future projects.

37 Tackling Climate Change and Energy Efﬁ ciency Our operations

Working with the Carbon Trust has helped us strengthen our approach to managing the carbon emissions associated with our operations. It has helped us deﬁ ne clear reporting boundaries, in line with the reporting requirements of the World Business Council for Sustainable Development Greenhouse Gas Protocol.

In 2012 our reported total carbon emissions rose by 6.5%, relative to turnover, compared with 2011. The quality of the data we collected in 2012 was signifi cantly better than that of 2011, which we think partly explains this disappointing increase. However, we know that business factors contributed too. On average, the construction industry has seen a 7% reduction in costs since 2010. An independent assessment has also confi rmed that our Sunesis projects are 20-38% cheaper than similar projects currently being delivered across the UK. We are proud of the value for money that we provide, but the fact that we are delivering more square footage per £m of turnover has increased the intensity of construction activities, and therefore also our carbon footprint. Going forward, we have set ourselves a target of reducing our emissions by 15% by 2014, compared to a 2010 baseline, and we have a Carbon Management Plan in place which sets out how we will do this. A carbon-neutral business As a responsible business we aim to reduce our carbon emissions as much as possible. In 2012 we worked with Climate Care to identify where we could invest in projects to offset the emissions that we produced. The projects we chose aligned to the values of our Foundation. They included supporting a geothermal power project in Indonesia, and a project to switch two factories in Brazil from fossil fuels and fi rewood to renewable, locally sourced biomass. Our offset strategy was developed with recognised PAS 2060 principles, enabling us in 2012 to be the fi rst carbon neutral construction and support services company. We invested in a project to switch a factory in Brazil from fossil fuels to renewable, locally sourced biomass Absolute emissions

CO2e emissions (tonnes) Performance Percentage Change 2012 2011 2011/2012 Scope 1 12,067.7 11,351.3 +6.3% Scope 2 6,032.7 5,327.4 +13.2% Total Scope 1 and Scope 2 emissions 18,100.4 16,678.7 +8.5% Scope 3 emissions 2,341.8 2,515.2 -6.9% Total emissions 20,442.2 19,193.9 +6.5%

Emissions relative to turnover

CO2e intensity (tonnes/£m turnover) Performance Percentage Change 2012 2011 2011/2012 Total Scope 1 and Scope 2 emissions 17.5 15.9 +10.4% Total emissions 19.8 18.2 +8.4%

38 TRANSFORMING TOMORROW On site Rising costs make energy a major overhead on site, so we have introduced a number of initiatives to help us reduce consumption. For example, our new projects now use Eco- Cabins, which have more insulation, double glazing and more energy-efﬁ cient lighting. We are now considering how we can understand and monitor our energy usage better, with a view to installing energy monitoring equipment across our major sites in 2013.

In the offi ce Eco-Cabin In 2012 we invested £240,000 in a range of energy improvement measures. These included installing energy metering and monitoring equipment, providing real-time information and reporting, and a behavioural change programme. We are now developing real-time energy performance reporting to help us manage consumption and motivate staff. The projected savings from these measures represent a 55 tonnes per year reduction in total carbon emissions. We are a growing business, and the amount of space we need is increasing. So we are making sure that future leases or extensions to existing leases take into account sustainability considerations. Jubilee Great Switch-off poster On the move We have more than 850 light commercial vehicles for tradespeople providing repairs and maintenance to over 500,000 social housing tenants across the country. We also have a 780-strong car fl eet. This makes vehicle mileage a key area when it comes to reducing carbon emissions. Tackling Climate Change and Energy Effi In 2012 our average company car effi ciency was 123g CO2 /km – an improvement of 5g CO2 / km on the 2011 total. This is due to a range of measures including: Fleet • Green Bonus incentives for employees with cars with lower emissions, Company car emissions • limiting the company car list to vehicles with lower emissions, (g of CO2 per km) • encouraging the use of bicycles through salary sacrifi ce schemes and mileage reimbursement, 2012 • driven business mileage limits and fi nes for offi ces where employees exceed them,

• adjusting fuel reimbursement rates to refl ect company car CO2 emissions, 123 ciency • incentivising car sharing for business trips and commuting, • ensuring employees are aware of the tax band implications for the full number of years of a company car lease. 2011 In 2012 our Partnerships Division developed a system for monitoring the fuel effi ciency of its fl eet. We also researched the use of alternatively fuelled vehicles. While, at the 128 moment this is not a commercially viable option, we have implemented a number of initiatives to drive down emissions, including piloting an in-vehicle driver behaviour monitoring system and better route optimisation.

39 Smarter Use of Natural Resources

Creating a sustainability showcase In 2012 we began work on The World Wildlife Fund’s new £15 million headquarters, The Living Planet Centre, in Woking. The environmentally intelligent building uses state- of-the-art sustainable building technologies, enabling the organisation to showcase its global work through the building itself. The client’s brief was for a building that was sympathetic to its natural surrounding while attaining the highest sustainability standards. The client challenged our team to meet carbon as well as fi nancial targets, by setting a carbon budget. This helped reduce the embodied carbon of the building by over 40%, compared to a standard high performance offi ce building. It’s fantastic we can The project gave us the chance to implement a number of new sustainability initiatives. “work with Willmott Dixon Procurement was a key area of focus. We were able to certify 98.5% of building materials to create an outstanding as responsibly sourced. We now look set to achieve the full FSC project certifi cation, example of a sustainable helping towards a BREEAM rating of outstanding. The lessons we have learned on this building.” project have infl uenced the development of our Group Sustainable Procurement Policy, David Nussbaum and are having a positive infl uence across our business. Chief Executive , World Wildlife Fund UK

40 TRANSFORMING TOMORROW Smarter Use of Natural Resources

The construction industry as a whole consumes more materials than any other industry. Resource efﬁ ciency is vital if we are to minimise the negative impact of our activities. A key part of our Sustainable 95% In 2012 we diverted 95% of Development Strategy focusses on reducing the amount of materials construction waste from landﬁ ll we use and the volume of waste we produce.

Headlines 9.6m3 95% of waste diverted from landﬁ ll. Our water consumption per £100,000 of turnover fell Water consumption per £100,000 of turnover fell 4% from 10m³ 4% from 10m³ to 9.6m³ to 9.6m³. Developed strategic arrangements with 27 manufacturers for materials recycling. Started work on The World Wildlife Fund’s new £15 million headquarters, The Living Planet Centre, in Woking – a major sustainability showcase for the UK. Issued a new sustainable procurement policy to ensure that we make the right choices in the sourcing of products and materials. We work with our “supply chain to reuse materials and reduce water consumption.” Martin Ballard Group Environment Manager Smarter Use of Natural Resources

41 Smarter Use of Natural Resources

Our Group Sustainable Procurement Policy We estimate that 80% of our turnover – about £3.2m each day – is spent on the procurement of goods, works and services. We need to make sure we spend this money responsibly. In late 2011 we engaged with our suppliers, subcontractors and manufacturers in the development of the Willmott Dixon Group Sustainable Procurement Policy. The resulting 2012 policy sets out how we will reduce our consumption of primary resources, and use materials with fewer negative impacts on the environment. We procure with a preference for material and products which are certiﬁ ed as responsibly sourced. Our approach to sustainable procurement is in line with the principles contained within BS 8903. The standard provides a framework against which we have set our measurable aims and objectives for improvement over the procurement of goods, works and services. We have set out clear guidance to staff and suppliers around responsible sourcing in our Sustainable Procurement of Materials and Products Implementation Matrix.

Super-eco housing in Hounslow The Greenway on Staines Road in Hounslow is an 18-unit mix of social housing and affordable homes built to the Code for Sustainable Homes Level 5 standard. It’s also one of the ﬁ rst housing schemes in London to meet the Mayor’s Housing Design Guidelines, which specify a minimum size for living space and corridor width, and expect every home to have space to store a bicycle. The development also features: • A rainwater recycling system that could reduce water consumption to around half the current national average. “A fantastic project… • Allotments and a mini orchard. [with] precisely the qualities • Active cooling control which uses a cooling loop within the concrete ﬂ oor slabs linked I want to see in housing to an underground circuit of pipes to remove heat from the building when it gets too developments right across warm. the capital. ” Now they are occupied, our Energy Services team are monitoring the homes for energy Boris Johnson, Mayor of London consumption and heat loss over a two year period. The results will be shared across the housing sector to inform future eco-friendly building work.

Timber Our 2012 Sustainable Procurement Policy commits us to procuring timber which is legally and sustainably sourced. We are now undertaking two project certiﬁ cations, so that our construction projects can be certiﬁ ed to either FSC or PEFC, via third party audits. We also continue to work with our suppliers and sub-contractors on a timber reporting system to provide assurance that only legal and sustainable timber is being supplied. Willmott Dixon is chairing a contractors’ task group which is supporting ‘Grown in Britain.’ This industry-led and Government-backed campaign aims to stimulate demand for more home-grown timber. Buying British timber will help support and develop the country’s woods and forests, enhancing biodiversity, creating jobs and supporting local economies.

42 TRANSFORMING TOMORROW Water 2012 saw us continue to reduce the amount of water we use. Our consumption per £100,000 of turnover fell 4% from 10m³ to 9.6m³. The heavy rain in 2012 was a challenge on many of our construction sites – careful management was needed to avoid ﬂ ooding. However, it also meant that we could try new methods of using harvested rainwater. Water usage (m3/£100,000)

12.9 12.5 10.2 11.7 10.0 9.6

2007 2008 2009 2010 2011 2012

Harvesting rainwater, to make a splash in Gosport There was heavy rain during the build of Gosport Leisure Centre, so we decided to use rainwater to test the structural integrity of its swimming pools. The site team diverted half the roof’s run off directly into the pools. Both pools were completely fi lled using this method prior to tiling works. Once any leaks had been identifi ed, the water was reused for other site activities such as tool cleaning and landscaping. The rainwater harvest saved us using a massive 435m³ of treated mains water. The initiative had other benefi ts too – it reduced the risk of fl ooding on site which Gosport Pool would have led to signifi cant project delays.

Biodiversity We take great care to identify and protect the plants and animals living on and around our sites, and where necessary, take measures to minimise our impact. The case study below provides a typical example of those measures in action.

Protecting Dingy Skipper habitat Before we started to build the new Penrhos Community Primary School, an ecological survey identifi ed the presence of a rare butterfl y called the Dingy Skipper. We worked with Butterfl y Conservation, creating and enhancing conservation zones, planting seeds to provide plants which would support the butterfl ies. We appointed Smarter Use of Natural Resources a biodiversity champion to ensure that the habitat areas were inspected and protected during the project. Inductions and toolbox talks ensured that all trades were aware of the protection zones, and the importance of not disturbing them. Once the school building was complete, we The rare Dingy Skipper butterfl y handed the butterfl y monitoring programme we had developed over to the school along, with a section in their maintenance manual on how to manage the habitat and the wild fl ower banks.

43 Smarter Use of Natural Resources

Diversion of waste from landfi ll Waste At Willmott Dixon we believe in setting targets that challenge us. Back in 2008 we said 60% 91% that in 2012 we would send no waste to landfi ll at all. This target included construction, demolition and excavation waste. This was the most ambitious target in our sector. 2007 2010 Our 2012 achievement – of 95% of waste diverted from landfi ll – falls a little short, but it still ranks among the best result in the industry. So how did we achieve it? Target 85% We worked with product suppliers to apply the waste hierarchy to the management of 72% 96% waste materials and encourage re-use ahead of recycling and recovery. For example, we encouraged the re-use of discarded furniture and the repair and repatriation of pallets. We collected detailed data which helped us understand which waste streams were the 2008 2011 most diffi cult to divert from landfi ll, and worked with a number of manufacturers to trial Target 70% Target 90% and implement takeback schemes. We studied our designs very carefully so that we were more precise about the quantities 84% 95% of materials we procured in the fi rst place. This is an area that we expect will improve signifi cantly with the application of BIMM. 2009 2012 We developed a new pre-demolition audit process which helped us work with contractors to identify more effi cient ways of managing demolition arisings. Target 80% Target 100% We worked with waste service providers who report in accordance with PAS 402: Waste Resource Management Specifi cation for Performance Reporting, or are working towards this standard. This helped us provide certainty in our waste management performance calculations, including diversion from landfi ll and material recovery rates. We also required that our trade contractors operate to the same standard. We will remain committed to carrying out Site Waste Management Plans, even if they cease to be a legal requirement. We are continuing to work towards our target of zero waste to landfi ll.

Kingspan In 2011, we developed a takeback scheme with Kingspan Insulation. It was so successful that we made the scheme available to all sites, and began talks with other manufacturers to develop similar schemes. In 2012 the scheme was developed still further by our Energy Services team when they ﬁ tted external wall insulation to 78 domestic dwellings on behalf of the energy company, E-ON. All waste offcuts from the works were segregated, bagged up on site, and collected by Kingspan at the same time as they delivered new insulation. Kingspan collected 3600kg of offcuts – equivalent to 12 x 12 yard skips. The scheme saved £2,060 Kingspan recycling on the cost of a traditional disposal method, and it also helped us divert a large quantity of material from landﬁ ll.

Excavation waste being recycled at Keynesham As part of the regeneration of Keynesham town centre, we were able to re-classify some of the excavation waste under the CL:AIRE protocol and use the material to support the slab for the new buildings. This diverted 5,320m³ of material from landﬁ ll, saving 592 lorry movements, and £127,000 in disposal costs.

44 TRANSFORMING TOMORROW Independent Veriﬁ cation Statement

Introduction Bureau Veritas UK was commissioned by Willmott Dixon to verify performance against selected sustainability Key Performance Indicators (KPIs), thereby providing assurance to stakeholders on the accuracy and reliability of this data. Scope and Methodology The KPI period assessed relates to 1 January 2012 to 31 December 2012, covering all Willmott Dixon Group businesses. Veriﬁ cation of performance data was carried out through a process of document review, data sampling and interrogation of supporting databases and associated reporting systems. Assessment of Achievement The table below presents Willmott Dixon KPI performance as veriﬁ ed by Bureau Veritas:

KPI Veriﬁ ed Performance Carbon footprint 20,442 tCO2e Total waste diverted from landﬁ ll 95% Construction waste generated 13.9m3/£100k Average Considerate Constructor Scheme (CCS) score 35.47 Value of community investment £1,131,890 Average training days per employee 3.6

Bureau Veritas Opinion Based on our investigations, it is our opinion that the above table is a reliable refl ection of progress against these KPIs. Bureau Veritas is confi dent that no material information has been withheld which could affect stakeholders’ ability to make informed judgments on Willmott Dixon’s 2012 performance. Bureau Veritas has made a number of recommendations which the Group should address, in order to improve its approach to managing and reporting sustainability activities. These recommendations are provided as a separate management report. Limitation and Exclusions Excluded from the scope of our work was: • Any information not directly linked to the selected KPIs; • Company strategy and position statements (including any expression of opinion, belief, aspiration, expectation or aim). A limited sample of site specifi c source data (e.g. waste transfer notes) and records were reviewed as part of this assessment. This statement should not be relied upon to detect all errors or omissions that may exist within the data sets reviewed. Statement of Independence Bureau Veritas is an independent professional services company that specialises in quality, health, safety, social and environmental management advice and compliance with over 180 years history in providing independent verifi cation and assurance services. Bureau Veritas has implemented a code of ethics across its business which ensures that all our staff maintain high standards of integrity and independence. We believe our verifi cation assignment did not raise any confl icts of interest. Our team completing the work has extensive knowledge and experience of conducting verifi cation over sustainability information and systems.

Bureau Veritas UK Ltd London, April 2013

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